The Basic Tips to Improve Your Finances

By understanding and creating a personalized budget, you take control of your money and create a roadmap that will help you succeed now and in the future. 

A budget is a plan that helps you manage your income, current expenses, and helps you save for your goals over set periods of time. With a budget, you have a plan for your spending and understand where your financial health currently stands.

What Is A Budget?

Budgeting is an important tool for every person who’s earning and spending money (so pretty much everyone). It’s an activity that helps you remain in control of your money, stay on track with your goals and keep away from financial stress. 

Who should be budgeting? 

1. Calculate monthly income

The first thing you’ll want to do when you get started with your budget is get your monthly income together. Knowing accurately how much money you make per month can help guide your decisions.

Budgeting for Beginners Basics

2. Add fixed expenses

Once you’ve calculated all your income, you’ll want to add up all your fixed expenses. Those would include how much you spend on rent or pay for a mortgage, student loans and car payments. These are expenses that you pay regularly every month and don’t fluctuate too much. 

Budgeting for Beginners Basics

3. Allocate your budget

Subtract your fixed expenses from your monthly income and this is the total dollar amount you have leftover to spend and save for the month. You then want to allocate this remaining amount to your “wants” and savings or other investments. 

Budgeting for Beginners Basics

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